Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | Apr. 30, 2016 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | ROWAN COMPANIES PLC | |
Entity Central Index Key | 85,408 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 125,385,989 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2016 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 595,200 | $ 484,228 |
Receivables - trade and other | 426,909 | 410,519 |
Prepaid expenses and other current assets | 19,735 | 26,528 |
Total current assets | 1,041,844 | 921,275 |
PROPERTY, PLANT AND EQUIPMENT: | ||
Drilling equipment | 8,951,655 | 8,930,434 |
Other property and equipment | 137,763 | 137,659 |
Property, plant and equipment - gross | 9,089,418 | 9,068,093 |
Less accumulated depreciation and amortization | 1,757,294 | 1,662,261 |
Property, plant and equipment - net | 7,332,124 | 7,405,832 |
Other assets | 18,159 | 20,160 |
TOTAL ASSETS | 8,392,127 | 8,347,267 |
CURRENT LIABILITIES: | ||
Current portion of long-term debt | 21,278 | 0 |
Accounts payable - trade | 87,071 | 109,574 |
Deferred revenues | 30,523 | 33,062 |
Accrued liabilities | 160,385 | 186,035 |
Total current liabilities | 299,257 | 328,671 |
Long-term debt, less current portion | 2,655,043 | 2,692,419 |
Other liabilities | 352,398 | 357,923 |
Deferred income taxes - net | $ 185,396 | $ 195,795 |
Commitments and contingent liabilities | ||
SHAREHOLDERS' EQUITY: | ||
Class A Ordinary Shares, $0.125 par value, 125,947,424 shares issued at March 31, 2016, and December 31, 2015 | $ 15,743 | $ 15,743 |
Additional paid-in capital | 1,456,998 | 1,458,532 |
Retained earnings | 3,632,596 | 3,509,792 |
Cost of 702,275 and 1,129,440 treasury shares at March 31, 2016, and December 31, 2015, respectively | (8,434) | (12,223) |
Accumulated other comprehensive loss | (196,870) | (199,385) |
Total shareholders' equity | 4,900,033 | 4,772,459 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 8,392,127 | $ 8,347,267 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2016 | Dec. 31, 2015 |
SHAREHOLDERS' EQUITY: | ||
Treasury shares | 702,275 | 1,129,440 |
Common Class A [Member] | ||
SHAREHOLDERS' EQUITY: | ||
Common stock, par value (in dollars per share) | $ 0.125 | $ 0.125 |
Common stock, shares issued (in shares) | 125,947,424 | 125,947,424 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Income Statement [Abstract] | ||
REVENUES | $ 500,180 | $ 547,039 |
COSTS AND EXPENSES: | ||
Direct operating costs (excluding items below) | 204,832 | 255,734 |
Depreciation and amortization | 98,852 | 89,690 |
Selling, general and administrative | 26,930 | 27,586 |
Loss (gain) on disposals of property and equipment | 2,177 | (513) |
Total costs and expenses | 332,791 | 372,497 |
INCOME FROM OPERATIONS | 167,389 | 174,542 |
OTHER INCOME (EXPENSE): | ||
Interest expense, net of interest capitalized | (38,924) | (32,746) |
Gain on extinguishment of debt | 577 | 0 |
Interest income | 444 | 155 |
Other - net | (2,577) | (1,041) |
Total other income (expense) - net | (40,480) | (33,632) |
INCOME BEFORE INCOME TAXES | 126,909 | 140,910 |
Provision for income taxes | 4,110 | 17,241 |
NET INCOME | $ 122,799 | $ 123,669 |
NET INCOME PER SHARE - BASIC (in dollars per share) | $ 0.98 | $ 0.99 |
NET INCOME PER SHARE - DILUTED (in dollars per share) | 0.98 | 0.99 |
CASH DIVIDENDS DECLARED PER SHARE (in dollars per share) | $ 0 | $ 0.1 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||
NET INCOME | $ 122,799 | $ 123,669 |
OTHER COMPREHENSIVE INCOME: | ||
Net reclassification adjustment for amounts recognized in net income as a component of net periodic benefit cost, net of income tax expense of $1,349 and $1,808, respectively | 2,515 | 3,386 |
COMPREHENSIVE INCOME | $ 125,314 | $ 127,055 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||
Net reclassification adjustments for amounts recognized in net income as a component of net periodic benefit cost, tax expense | $ 1,349 | $ 1,808 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
CASH PROVIDED BY OPERATIONS: | ||
Net income | $ 122,799 | $ 123,669 |
Adjustments to reconcile net income to net cash provided by operations: | ||
Depreciation and amortization | 98,852 | 90,564 |
Deferred income taxes | (12,568) | (7,541) |
Provision for pension and other postretirement benefits | 4,756 | 7,844 |
Share-based compensation expense | 8,203 | 5,190 |
Loss (gain) on disposals of property, plant and equipment | 2,177 | (513) |
Other postretirement benefit claims paid | (3,018) | (1,115) |
Contributions to pension plans | (3,135) | (375) |
Noncash loss on debt extinguishment | 86 | 0 |
Changes in current assets and liabilities: | ||
Receivables - trade and other | (16,390) | 42,053 |
Prepaid expenses and other current assets | 6,793 | 4,350 |
Accounts payable | (17,215) | 6,894 |
Accrued income taxes | 5,247 | 12,300 |
Deferred revenues | (2,539) | 1,163 |
Other current liabilities | (30,914) | (47,075) |
Net changes in other noncurrent assets and liabilities | (3,083) | 7,358 |
Net cash provided by operations | 160,051 | 244,766 |
CASH USED IN INVESTING ACTIVITIES: | ||
Capital expenditures | (32,908) | (514,265) |
Proceeds from disposals of property, plant and equipment | 299 | 1,680 |
Net cash used in investing activities | (32,609) | (512,585) |
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES: | ||
Reductions of long-term debt | (16,470) | 0 |
Dividends paid | 0 | (12,562) |
Excess tax benefit from share-based compensation | 0 | (1,981) |
Net cash used in financing activities | (16,470) | (14,543) |
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 110,972 | (282,362) |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 484,228 | 339,154 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ 595,200 | $ 56,792 |
CONDENSED CONSOLIDATED STATEME8
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Class A ordinary shares/ Common stock [Member] | Additional paid-in capital [Member] | Retained earnings [Member] | Treasury shares [Member] | Accumulated other comprehensive income (loss) [Member] |
Balance at Dec. 31, 2014 | $ 4,691,399 | $ 15,604 | $ 1,436,910 | $ 3,466,993 | $ (7,990) | $ (220,118) |
Balance (in shares) at Dec. 31, 2014 | 124,564 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net shares issued (acquired) under share-based compensation plans | (3,326) | $ 137 | 0 | (3,463) | ||
Net shares issued (acquired) under share-based compensation plans (in shares) | 199 | |||||
Share-based compensation | 5,761 | 5,761 | ||||
Excess tax benefit (shortfall) from share-based compensation plans | (1,981) | (1,981) | ||||
Retirement benefit adjustments, net of taxes | 3,386 | 3,386 | ||||
Dividends | (12,562) | (12,562) | ||||
Net income | 123,669 | 123,669 | ||||
Balance at Mar. 31, 2015 | 4,806,346 | $ 15,741 | 1,440,690 | 3,578,100 | (11,453) | (216,732) |
Balance (in shares) at Mar. 31, 2015 | 124,763 | |||||
Balance at Dec. 31, 2015 | 4,772,459 | $ 15,743 | 1,458,532 | 3,509,792 | (12,223) | (199,385) |
Balance (in shares) at Dec. 31, 2015 | 124,818 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net shares issued (acquired) under share-based compensation plans | (2,848) | $ 0 | (6,637) | 3,789 | ||
Net shares issued (acquired) under share-based compensation plans (in shares) | 427 | |||||
Share-based compensation | 5,923 | 5,923 | ||||
Excess tax benefit (shortfall) from share-based compensation plans | (820) | (820) | ||||
Retirement benefit adjustments, net of taxes | 2,515 | 2,515 | ||||
Dividends | 5 | 5 | ||||
Net income | 122,799 | 122,799 | ||||
Balance at Mar. 31, 2016 | $ 4,900,033 | $ 15,743 | $ 1,456,998 | $ 3,632,596 | $ (8,434) | $ (196,870) |
Balance (in shares) at Mar. 31, 2016 | 125,245 |
CONDENSED CONSOLIDATED STATEME9
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Statement of Stockholders' Equity [Abstract] | ||
Retirement benefit adjustments, taxes | $ 1,349 | $ 1,808 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table sets forth a reconciliation of basic and diluted shares (in thousands): Three months ended March 31, 2016 2015 Average common shares outstanding 124,962 124,294 Effect of dilutive securities - share-based compensation 840 806 Average shares for diluted computations 125,802 125,100 There were no adjustments to net income required for purposes of computing diluted earnings per share. Share options, appreciation rights and restricted share units granted under share-based compensation plans are antidilutive and excluded from diluted earnings per share when the hypothetical number of shares that could be repurchased under the treasury stock method exceeds the number of shares that can be exercised, or when the Company reports a net loss from continuing operations. Antidilutive shares, which could potentially dilute earnings per share in the future, are set forth below (in thousands): Three months ended March 31, 2016 2015 Share options and appreciation rights 1,740 1,456 Restricted share units 2,245 1,533 Total potentially dilutive shares 3,985 2,989 |
Nature of Operations and Basis
Nature of Operations and Basis of Presentation | 3 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations and Basis of Presentation | Nature of Operations and Basis of Presentation Rowan Companies plc, a public limited company incorporated under the laws of England and Wales, is a global provider of offshore contract drilling services to the international oil and gas industry. Our fleet currently consists of 31 mobile offshore drilling units, including 27 self-elevating jack-up drilling units and four ultra-deepwater drillships. We contract our drilling rigs, related equipment and work crews primarily on a day-rate basis in markets throughout the world, currently including the United States Gulf of Mexico (US GOM), the United Kingdom (U.K.) and Norwegian sectors of the North Sea, the Middle East and Trinidad. The financial statements included in this Form 10-Q are presented in United States (U.S.) dollars and include the accounts of Rowan Companies plc ( “ Rowan plc ” ) and its direct and indirect subsidiaries. Unless the context otherwise requires, the terms “Rowan,” “Company,” “we,” “us” and “our” are used to refer to Rowan plc and its consolidated subsidiaries. Intercompany balances and transactions have been eliminated in consolidation. The financial statements included in this Form 10-Q have been prepared without audit in accordance with accounting principles generally accepted in the United States of America (US GAAP) for interim financial information and the applicable rules and regulations of the U.S. Securities and Exchange Commission (SEC). Certain information and notes have been condensed or omitted as permitted by those rules and regulations. Management believes the accompanying financial statements contain all adjustments, which are of a normal recurring nature unless otherwise noted, necessary for a fair statement of the results for the interim periods presented. The Company’s results of operations and cash flows for the interim periods are not necessarily indicative of results to be expected for the full year. These financial statements should be read in conjunction with the audited consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 . New Accounting Standards Revenue Recognition – In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers, which sets forth a global standard for revenue recognition and replaces most existing industry-specific guidance. We will be required to adopt the new standard in annual and interim periods beginning January 1, 2018. The amendments may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of initial application. We are evaluating the standard and have not yet determined our implementation method upon adoption or what impact adoption will have on our financial statements. Presentation of Deferred Taxes – In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes, which requires entities to present deferred tax assets and deferred tax liabilities in balance sheets as noncurrent. We will be required to adopt the new standard in annual and interim periods beginning January 1, 2017. The amendments in this ASU may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. We are evaluating the standard and have not yet determined our implementation method. Lease Accounting – In February 2016, the FASB issued ASU No. 2016-02, Leases, which requires the balance sheet recognition of lease assets and lease liabilities by lessees for leases previously classified as operating leases under prior GAAP. We will be required to adopt the new standard in annual and interim periods beginning January 1, 2019. Lessees and lessors will be required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach, including a number of optional practical expedients that entities may elect to apply. We have not yet evaluated the standard nor determined our implementation method upon adoption or what impact adoption will have on our financial statements. Stock Compensation – In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-based Payment Accounting, which simplifies several aspects of accounting for employee share-based payment awards, including the accounting for income taxes, withholding taxes and forfeitures, as well as classification on the statement of cash flows. We will be required to adopt the amended guidance in annual and interim reports beginning January 1, 2017, with early adoption permitted. We are in the process of determining the method of adoption and the impact this amendment will have on our consolidated financial statements . |
Pension and Other Postretiremen
Pension and Other Postretirement Benefits | 3 Months Ended |
Mar. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension and Other Postretirement Benefits | Pension and Other Postretirement Benefits The Company provides defined-benefit pension, health care and life insurance benefits upon retirement for certain full-time employees. Net periodic pension cost recognized during the periods included the following components (in thousands): Three months ended March 31, 2016 2015 Service cost $ 3,781 $ 4,189 Interest cost 6,502 7,860 Expected return on plan assets (9,915 ) (10,414 ) Amortization of net loss 5,108 6,311 Amortization of prior service credit (1,245 ) (1,115 ) Total net pension cost $ 4,231 $ 6,831 Other postretirement benefit cost recognized during the periods included the following components (in thousands): Three months ended March 31, 2016 2015 Service cost $ 114 $ 320 Interest cost 509 695 Amortization of net loss (1 ) (2 ) Amortization of prior service credit (96 ) — Total other postretirement benefit cost $ 526 $ 1,013 During the three months ended March 31, 2016 , the Company contributed $6.2 million to its pension and other postretirement benefit plans and expects to make additional contributions to such plans totaling approximately $23.3 million for the remainder of 2016 . |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 3 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | Commitments and Contingent Liabilities Uncertain tax positions – We have been advised by the U.S. Internal Revenue Service of proposed unfavorable tax adjustments for the open tax years 2009 through 2012 that primarily relate to 2009 tax benefits recognized as a result of applying the facts of a third-party tax case that provided favorable tax treatment for certain foreign contracts entered into in prior years to the company’s situation; transfer pricing; domestic production activity deduction; and a change in tax accounting method related to tax depreciation, including applicable penalties and interest. We are presently analyzing the facts and circumstances and evaluating the potential impact, if any, regarding these issues. In years subsequent to 2012, we have similar positions that could be subject to similar adjustments for the open years. We have provided for amounts that we believe will be ultimately payable under the proposed adjustments and intend to vigorously defend our positions; however, if we determine the provisions for these matters to be inadequate due to new information or we are required to pay a significant amount of additional U.S. taxes and applicable penalties and interest in excess of amounts that have been provided for these matters, our consolidated results of operations and cash flows could be materially and adversely affected. Letters of credit – We periodically employ letters of credit in the normal course of our business, and had outstanding letters of credit of approximately $4.3 million at March 31, 2016 . We are involved in various other legal proceedings incidental to our business and are vigorously defending our position in all such matters. Although the outcome of such proceedings cannot be predicted with certainty, we do not expect resolution of these matters to have a material effect on our financial position, results of operations or cash flows. |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Share-Based Compensation On February 25, 2016, the Company granted restricted share units (RSUs) to employees for annual incentive awards pursuant to our long-term incentive plan with a grant-date fair value aggregating $19.3 million . The awards vest ratably over three years except to the extent they may vest earlier under our retirement policy. The aggregate grant-date fair value, net of estimated forfeitures, was $18.2 million , which will be recognized as compensation expense over a weighted-average period of 2.6 years from the grant date. Additionally, on February 25, 2016, the Company granted to certain members of management performance units (P-Units) that have a target value of $100 per unit. The amount ultimately earned with respect to the P-Units will depend on the Company’s total shareholder return (TSR) ranking compared to a group of peer companies over a three -year period ending December 31, 2018, and could range from zero to $200 per unit depending on performance. Twenty-five percent of the P-Units’ value is determined by the Company’s relative TSR ranking for each one -year period ended December 31, 2016 , 2017 , and 2018 , respectively, and 25% of the P-Units’ value is determined by the relative TSR ranking for the three -year period ending December 31, 2018. Vesting and settlement of any P-Units would not occur until the third anniversary following the grant date. Settlement may be in cash or shares at the discretion of the Company. The grant-date fair value of the P-Units was estimated to be $8.6 million . Fair value was estimated using a Monte Carlo simulation model, which considers the probabilities of the Company’s TSR ranking at the end of each performance period and the amount of the payout at each rank to determine the probability-weighted expected payout. The Company uses liability accounting to account for the P-Units. Compensation is recognized on a straight-line basis over a maximum period of three years from the grant date and is adjusted for changes in fair value through the vesting date. Estimated liabilities for P-Units as of March 31, 2016 , included $7.9 million and $5.5 million classified as short- and long-term, respectively, compared to $7.6 million and $11.4 million , respectively, at December 31, 2015 . At March 31, 2016 , estimated unrecognized share-based compensation totaled approximately $51.6 million , which is expected to be recognized as compensation expense over a remaining weighted-average period of 2.0 years . |
Fair Value Measurements Fair Va
Fair Value Measurements Fair Value Measurements | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy prescribed by US GAAP requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of inputs that may be used to measure fair value are: • Level 1 – Quoted prices for identical instruments in active markets; • Level 2 – Quoted market prices for similar instruments in active markets; quoted prices for identical instruments in markets that are not active, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and • Level 3 – Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable, such as those used in pricing models or discounted cash flow methodologies, for example. The applicable level within the fair value hierarchy is the lowest level of any input that is significant to the fair value measurement. Assets and Liabilities Measured at Fair Value on a Recurring Basis Assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands): Estimated fair value measurements Carrying value Quoted prices in active markets (Level 1) Significant other observable inputs (Level 2) Significant other unobservable inputs (Level 3) March 31, 2016: Assets - cash equivalents $ 583,546 $ 583,546 $ — $ — Other assets 11,690 11,690 — — December 31, 2015: Assets - cash equivalents $ 465,388 $ 465,388 $ — $ — Other assets 13,508 13,508 — — At March 31, 2016 and December 31, 2015, we held Egyptian pounds in the amount of $11.7 million and $13.5 million , respectively, which are classified as other noncurrent assets. We ceased drilling operations in Egypt in 2014, and are currently working to obtain access to the funds for use outside Egypt to the extent they are not utilized. We can provide no assurance we will be able to convert or utilize such funds in the future. Trade receivables and trade payables, which are required to be measured at fair value, have carrying values that approximate their fair values due to their short maturities. Other Fair Value Measurements Financial instruments not required to be measured at fair value consist of the Company’s publicly traded debt securities. Our publicly traded debt securities had a carrying value of $2.676 billion at March 31, 2016 , and an estimated fair value at that date aggregating $1.943 billion , compared to a carrying and fair value of $2.692 billion and $2.072 billion , respectively, at December 31, 2015 . Fair values of our publicly traded debt securities were provided by a broker who makes a market in such securities and were measured using a market-approach valuation technique. Fair value was determined by adding a spread based on actual trades for that security (or a trader quote where actual trades were unavailable) to the applicable benchmark Treasury security with a comparable maturity in order to derive a current yield. The yield is then used to determine a price given the individual security’s coupon rate and maturity. Such inputs are considered “significant other observable inputs” which are categorized as Level 2 inputs in the fair value hierarchy. |
Shareholders' Equity (Notes)
Shareholders' Equity (Notes) | 3 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders' Equity Reclassifications from Accumulated Other Comprehensive Loss – The following table sets forth the significant amounts reclassified out of each component of accumulated other comprehensive loss and their effect on net income for the period (in thousands): Three months ended March 31, 2016 2015 Amounts recognized as a component of net periodic pension and other postretirement benefit cost: Amortization of net loss $ (5,105 ) $ (6,309 ) Amortization of prior service credit 1,241 1,115 Total before income taxes (3,864 ) (5,194 ) Income tax benefit 1,349 1,808 Total reclassifications for the period, net of income taxes $ (2,515 ) $ (3,386 ) |
Other Financial Statement Discl
Other Financial Statement Disclosures | 3 Months Ended |
Mar. 31, 2016 | |
Other Financial Statement Disclosures [Abstract] | |
Other Financial Statement Disclosures | Other Financial Statement Disclosures Accounts Receivable – The following table sets forth the components of Receivables - trade and other (in thousands): March 31, 2016 December 31, 2015 Trade $ 411,754 $ 395,694 Income tax 4,947 4,463 Other 10,208 10,362 Total receivables - trade and other $ 426,909 $ 410,519 Accrued Liabilities – The following table sets forth the components of accrued liabilities (in thousands): March 31, 2016 December 31, 2015 Pension and other postretirement benefits $ 26,675 $ 31,389 Compensation and related employee costs 55,958 73,628 Interest 34,155 44,338 Income taxes 29,174 23,927 Other 14,423 12,753 Total accrued liabilities $ 160,385 $ 186,035 Long-term Debt – Long-term debt consisted of the following (in thousands): March 31, 2016 December 31, 2015 5% Senior Notes, due September 2017 ($359.6 million and $366.6 million principal amount, respectively; 5.1% effective rate) $ 358,682 $ 365,494 7.875% Senior Notes, due August 2019 ($426.0 million and $435.5 million principal amount, respectively; 8.0% effective rate) 423,650 432,870 4.875% Senior Notes, due June 2022 ($700 million principal amount; 4.6% effective rate) 705,994 706,236 4.75% Senior Notes, due January 2024 ($400 million principal amount; 4.8% effective rate) 397,160 397,069 5.4% Senior Notes, due December 2042 ($400 million principal amount; 5.5% effective rate) 394,769 394,720 5.85% Senior Notes, due January 2044 ($400 million principal amount; 5.9% effective rate) 396,066 396,030 Total carrying value 2,676,321 2,692,419 Less: amounts classified as current 21,278 — Long-term debt, less current portion $ 2,655,043 $ 2,692,419 In the first quarter of 2016, we paid $15.9 million in cash to retire $16.5 million aggregate principal amount of the 5% Notes due 2017 and 7.875% Notes due 2019, plus accrued interest, and recognized a $0.6 million gain on early extinguishment of debt. Also during the quarter, we repurchased an additional $21.4 million aggregate principal amount ( $21.3 million carrying value) of the 5% and 7.875% Notes, which settled in April 2016 and which will result in the recognition of a $1.2 million gain on debt extinguishment in the second quarter. Such amount has been classified as short-term debt at March 31, 2016. In April 2016 we repurchased $10.0 million aggregate principal amount of the 7.875% Notes which will result in the recognition of a $0.6 million gain on debt extinguishment in the second quarter. Supplemental Cash Flow Information – Accrued capital expenditures, which are excluded from capital expenditures in the Condensed Consolidated Statements of Cash Flows until settlement, totaled $27.0 million and $57.1 million at March 31, 2016 and 2015 , respectively. Interest capitalized in connection with rig construction projects totaled $7.5 million for the three months ended March 31, 2015. We did not capitalize any interest in the three months ended March 31, 2016. Income Taxes – In accordance with US GAAP for interim reporting, the Company estimates its full-year effective tax rate and applies this rate to its year-to-date pretax income. In addition, the Company separately calculates the tax impact of unusual items, if any. We provide for income taxes based upon the tax laws and rates in effect in the countries in which we conduct operations. The amounts of our provisions are impacted by such laws and rates and the availability of deductions, credits and other benefits in each of the various jurisdictions. Our overall effective tax rate may therefore vary considerably from quarter to quarter and from year to year based on the actual or projected location of operations and other factors. Our effective tax rate was 3.2% for the three months ended March 31, 2016 , compared to 12.2% for the comparable prior-year period. The lower effective tax rate for the three months ended March 31, 2016, was primarily due to a combination of higher income in low-tax jurisdictions and lower income in higher tax jurisdictions. The Company has not provided for deferred income taxes on undistributed earnings of its non-U.K. subsidiaries, including non-U.S. entities under Rowan Companies, Inc. (RCI). It is the Company’s policy and intention to permanently reinvest outside the U.S. the earnings of non-U.S. entities directly or indirectly owned by RCI. Generally, earnings of non-U.K. entities in which RCI does not have a direct or indirect ownership interest can be distributed to the Company without imposition of either U.K. or local country tax. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information We operate in two principal operating segments – deepwater, which consists of our drillship operations, and jack-ups. Both segments provide one service – contract drilling. The Company evaluates performance primarily based on income from operations. Depreciation and amortization and selling, general and administrative expenses related to our corporate and other administrative offices have not been allocated to our operating segments for purposes of measuring segment operating income and are included in the column "Unallocated costs and other." "Other operating items" consists of gains and losses on equipment sales. Segment information for the three months ended March 31 is set forth below (in thousands): Deepwater Jack-ups Segment total Unallocated costs and other Consolidated 2016: Revenues from external customers $ 222,534 $ 277,646 $ 500,180 $ — $ 500,180 Operating expenses: Direct operating costs (excluding items below) 66,982 137,850 204,832 — 204,832 Depreciation and amortization 27,348 68,354 95,702 3,150 98,852 Selling, general and administrative — — — 26,930 26,930 Other operating items 297 1,896 2,193 (16 ) 2,177 Income (loss) from operations $ 127,907 $ 69,546 $ 197,453 $ (30,064 ) $ 167,389 2015: Revenues from external customers $ 146,871 $ 400,168 $ 547,039 $ — $ 547,039 Operating expenses: Direct operating costs (excluding items below) 59,027 196,707 255,734 — 255,734 Depreciation and amortization 17,663 69,033 86,696 2,994 89,690 Selling, general and administrative — — — 27,586 27,586 Other operating items — — — (513 ) (513 ) Income (loss) from operations $ 70,181 $ 134,428 $ 204,609 $ (30,067 ) $ 174,542 |
Guarantees of Registered Securi
Guarantees of Registered Securities | 3 Months Ended |
Mar. 31, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Guarantees of Registered Securities | Guarantees of Registered Securities RCI, a 100% -owned Delaware subsidiary of Rowan plc, is the issuer of all of our publicly traded debt securities consisting of the following series: 5% Senior Notes due 2017; 7.875% Senior Notes due 2019; 4.875% Senior Notes due 2022; 4.75% Senior Notes due 2024; 5.4% Senior Notes due 2042; and 5.85% Senior Notes due 2044 (the “Senior Notes”). The Senior Notes and amounts outstanding under our revolving credit facility are guaranteed by Rowan plc on a full, unconditional and irrevocable basis. The condensed consolidating financial information that follows is presented on the equity method of accounting in accordance with Rule 3-10 of Regulation S-X in connection with Rowan plc’s guarantee of the Senior Notes. Rowan Companies plc and Subsidiaries Condensed Consolidating Balance Sheets March 31, 2016 (in thousands) (unaudited) Rowan plc (Parent) RCI (Issuer) Non-guarantor subsidiaries Consolidating adjustments Consolidated CURRENT ASSETS: Cash and cash equivalents $ 13,494 $ 88,146 $ 493,560 $ — $ 595,200 Receivables - trade and other 110 1,593 425,206 — 426,909 Other current assets 172 12,778 6,785 — 19,735 Total current assets 13,776 102,517 925,551 — 1,041,844 Property, plant and equipment - gross — 605,741 8,483,677 — 9,089,418 Less accumulated depreciation and amortization — 250,793 1,506,501 — 1,757,294 Property, plant and equipment - net — 354,948 6,977,176 — 7,332,124 Investments in subsidiaries 4,895,578 6,117,073 — (11,012,651 ) — Due from affiliates 40 970,885 13,601 (984,526 ) — Other assets — 5,526 12,633 — 18,159 $ 4,909,394 $ 7,550,949 $ 7,928,961 $ (11,997,177 ) $ 8,392,127 CURRENT LIABILITIES: Current portion of long-term debt $ — $ 21,278 $ — $ — $ 21,278 Accounts payable - trade 207 17,404 69,460 — 87,071 Deferred revenues — — 30,523 — 30,523 Accrued liabilities 467 94,385 65,533 — 160,385 Total current liabilities 674 133,067 165,516 — 299,257 Long-term debt, less current portion — 2,655,043 — — 2,655,043 Due to affiliates 4,036 12,789 967,701 (984,526 ) — Other liabilities 4,651 304,297 43,450 — 352,398 Deferred income taxes - net — 529,308 143,677 (487,589 ) 185,396 Shareholders' equity 4,900,033 3,916,445 6,608,617 (10,525,062 ) 4,900,033 $ 4,909,394 $ 7,550,949 $ 7,928,961 $ (11,997,177 ) $ 8,392,127 Rowan Companies plc and Subsidiaries Condensed Consolidating Balance Sheets December 31, 2015 (in thousands) Rowan plc (Parent) RCI (Issuer) Non-guarantor subsidiaries Consolidating adjustments Consolidated CURRENT ASSETS: Cash and cash equivalents $ 17,297 $ 9,506 $ 457,425 $ — $ 484,228 Receivables - trade and other 110 1,369 409,040 — 410,519 Other current assets 394 19,230 6,904 — 26,528 Total current assets 17,801 30,105 873,369 — 921,275 Property, plant and equipment - gross — 592,809 8,475,284 — 9,068,093 Less accumulated depreciation and amortization — 242,665 1,419,596 — 1,662,261 Property, plant and equipment - net — 350,144 7,055,688 — 7,405,832 Investments in subsidiaries 4,763,306 6,028,242 — (10,791,548 ) — Due from affiliates 629 1,218,233 55,751 (1,274,613 ) — Other assets — 4,999 15,161 — 20,160 $ 4,781,736 $ 7,631,723 $ 7,999,969 $ (12,066,161 ) $ 8,347,267 CURRENT LIABILITIES: Accounts payable - trade $ 960 $ 19,111 $ 89,503 $ — $ 109,574 Deferred revenues — 6 33,056 — 33,062 Accrued liabilities 778 119,388 65,869 — 186,035 Total current liabilities 1,738 138,505 188,428 — 328,671 Long-term debt — 2,692,419 — — 2,692,419 Due to affiliates 2,880 55,750 1,215,983 (1,274,613 ) — Other liabilities 4,659 304,709 48,555 — 357,923 Deferred income taxes - net — 522,927 150,822 (477,954 ) 195,795 Shareholders' equity 4,772,459 3,917,413 6,396,181 (10,313,594 ) 4,772,459 $ 4,781,736 $ 7,631,723 $ 7,999,969 $ (12,066,161 ) $ 8,347,267 Rowan Companies plc and Subsidiaries Condensed Consolidating Income Statements Three months ended March 31, 2016 (in thousands) (unaudited) Rowan plc (Parent) RCI (Issuer) Non-guarantor subsidiaries Consolidating adjustments Consolidated REVENUES $ — $ 20,788 $ 499,411 $ (20,019 ) $ 500,180 COSTS AND EXPENSES: Direct operating costs (excluding items below) — 976 222,358 (18,502 ) 204,832 Depreciation and amortization — 4,195 94,339 318 98,852 Selling, general and administrative 7,027 — 21,738 (1,835 ) 26,930 Loss on disposals of property and equipment — 10 2,167 — 2,177 Total costs and expenses 7,027 5,181 340,602 (20,019 ) 332,791 INCOME (LOSS) FROM OPERATIONS (7,027 ) 15,607 158,809 — 167,389 OTHER INCOME (EXPENSE): Interest expense, net of interest capitalized — (38,924 ) (1,942 ) 1,942 (38,924 ) Interest income 15 1,975 396 (1,942 ) 444 Gain on debt extinguishment — 577 — — 577 Other - net 5,357 (5,333 ) (2,601 ) — (2,577 ) Total other income (expense) - net 5,372 (41,705 ) (4,147 ) — (40,480 ) INCOME (LOSS) BEFORE INCOME TAXES (1,655 ) (26,098 ) 154,662 — 126,909 Provision (benefit) for income taxes — 11,477 2,472 (9,839 ) 4,110 Equity in earnings of subsidiaries, net of tax 124,454 26,594 — (151,048 ) — NET INCOME (LOSS) $ 122,799 $ (10,981 ) $ 152,190 $ (141,209 ) $ 122,799 Rowan Companies plc and Subsidiaries Condensed Consolidating Income Statements Three months ended March 31, 2015 (in thousands) (unaudited) Rowan plc (Parent) RCI (Issuer) Non-guarantor subsidiaries Consolidating adjustments Consolidated REVENUES $ — $ 15,046 $ 547,351 $ (15,358 ) $ 547,039 COSTS AND EXPENSES: Direct operating costs (excluding items below) — 1,697 268,291 (14,254 ) 255,734 Depreciation and amortization — 4,580 84,861 249 89,690 Selling, general and administrative 4,212 642 24,085 (1,353 ) 27,586 Gain on disposals of property and equipment — (342 ) (171 ) — (513 ) Total costs and expenses 4,212 6,577 377,066 (15,358 ) 372,497 INCOME (LOSS) FROM OPERATIONS (4,212 ) 8,469 170,285 — 174,542 OTHER INCOME (EXPENSE): Interest expense, net of interest capitalized — (32,746 ) (2,449 ) 2,449 (32,746 ) Interest income 134 2,467 3 (2,449 ) 155 Other - net 5,604 (5,523 ) (1,122 ) — (1,041 ) Total other income (expense) - net 5,738 (35,802 ) (3,568 ) — (33,632 ) INCOME (LOSS) BEFORE INCOME TAXES 1,526 (27,333 ) 166,717 — 140,910 Provision (benefit) for income taxes — 390 28,749 (11,898 ) 17,241 Equity in earnings of subsidiaries, net of tax 122,143 22,078 — (144,221 ) — NET INCOME (LOSS) $ 123,669 $ (5,645 ) $ 137,968 $ (132,323 ) $ 123,669 Rowan Companies plc and Subsidiaries Statements of Comprehensive Income Three months ended March 31, 2016 (in thousands) (unaudited) Rowan plc (Parent) RCI (Issuer) Non-guarantor subsidiaries Consolidating adjustments Consolidated NET INCOME (LOSS) $ 122,799 $ (10,981 ) $ 152,190 $ (141,209 ) $ 122,799 OTHER COMPREHENSIVE INCOME: Net reclassification adjustments for amount recognized in net income as a component of net periodic benefit cost, net of income taxes 2,515 2,515 — (2,515 ) 2,515 COMPREHENSIVE INCOME (LOSS) $ 125,314 $ (8,466 ) $ 152,190 $ (143,724 ) $ 125,314 Rowan Companies plc and Subsidiaries Statements of Comprehensive Income Three months ended March 31, 2015 (in thousands) (unaudited) Rowan plc (Parent) RCI (Issuer) Non-guarantor subsidiaries Consolidating adjustments Consolidated NET INCOME (LOSS) $ 123,669 $ (5,645 ) $ 137,968 $ (132,323 ) $ 123,669 OTHER COMPREHENSIVE INCOME: Net reclassification adjustments for amount recognized in net income as a component of net periodic benefit cost, net of income taxes 3,386 3,386 — (3,386 ) 3,386 COMPREHENSIVE INCOME (LOSS) $ 127,055 $ (2,259 ) $ 137,968 $ (135,709 ) $ 127,055 Rowan Companies plc and Subsidiaries Consolidating Statements of Cash Flows Three months ended March 31, 2016 (in thousands) (unaudited) Rowan plc (Parent) RCI (Issuer) Non-guarantor subsidiaries Consolidating adjustments Consolidated NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES $ (2,504 ) $ (46,553 ) $ 208,584 $ 524 $ 160,051 INVESTING ACTIVITIES: Property, plant and equipment additions — (9,134 ) (23,774 ) — (32,908 ) Proceeds from disposals of property, plant and equipment — 244 55 — 299 Collections on subsidiary notes receivables — 248,795 — (248,795 ) — Investments in consolidated subsidiaries (200 ) (59,949 ) — 60,149 — Net cash provided by (used in) investing activities (200 ) 179,956 (23,719 ) (188,646 ) (32,609 ) FINANCING ACTIVITIES: Advances (to) from affiliates (1,099 ) (38,293 ) 39,916 (524 ) — Contributions from parent — — 60,149 (60,149 ) — Repayments of borrowings — (16,470 ) (248,795 ) 248,795 (16,470 ) Net cash provided by (used in) financing activities (1,099 ) (54,763 ) (148,730 ) 188,122 (16,470 ) (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (3,803 ) 78,640 36,135 — 110,972 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 17,297 9,506 457,425 — 484,228 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 13,494 $ 88,146 $ 493,560 $ — $ 595,200 Rowan Companies plc and Subsidiaries Consolidating Statements of Cash Flows Three months ended March 31, 2015 (in thousands) (unaudited) Rowan plc (Parent) RCI (Issuer) Non-guarantor subsidiaries Consolidating adjustments Consolidated NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES $ (3,615 ) $ (19,741 ) $ 266,064 $ 2,058 $ 244,766 INVESTING ACTIVITIES: Property, plant and equipment additions — (1,758 ) (512,507 ) — (514,265 ) Proceeds from disposals of property, plant and equipment — 1,198 482 — 1,680 Net cash used in investing activities — (560 ) (512,025 ) — (512,585 ) FINANCING ACTIVITIES: Advances (to) from affiliates (28,837 ) (23,352 ) 54,247 (2,058 ) — Dividends paid (12,562 ) — — — (12,562 ) Excess tax benefit (deficit) from share-based compensation — (1,981 ) — — (1,981 ) Net cash provided by (used in) financing activities (41,399 ) (25,333 ) 54,247 (2,058 ) (14,543 ) DECREASE IN CASH AND CASH EQUIVALENTS (45,014 ) (45,634 ) (191,714 ) — (282,362 ) CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 45,909 48,580 244,665 — 339,154 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 895 $ 2,946 $ 52,951 $ — $ 56,792 |
Nature of Operations and Basi20
Nature of Operations and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The financial statements included in this Form 10-Q have been prepared without audit in accordance with accounting principles generally accepted in the United States of America (US GAAP) for interim financial information and the applicable rules and regulations of the U.S. Securities and Exchange Commission (SEC). Certain information and notes have been condensed or omitted as permitted by those rules and regulations. Management believes the accompanying financial statements contain all adjustments, which are of a normal recurring nature unless otherwise noted, necessary for a fair statement of the results for the interim periods presented. The Company’s results of operations and cash flows for the interim periods are not necessarily indicative of results to be expected for the full year. These financial statements should be read in conjunction with the audited consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 . |
New Accounting Standards | New Accounting Standards Revenue Recognition – In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers, which sets forth a global standard for revenue recognition and replaces most existing industry-specific guidance. We will be required to adopt the new standard in annual and interim periods beginning January 1, 2018. The amendments may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of initial application. We are evaluating the standard and have not yet determined our implementation method upon adoption or what impact adoption will have on our financial statements. Presentation of Deferred Taxes – In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes, which requires entities to present deferred tax assets and deferred tax liabilities in balance sheets as noncurrent. We will be required to adopt the new standard in annual and interim periods beginning January 1, 2017. The amendments in this ASU may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. We are evaluating the standard and have not yet determined our implementation method. Lease Accounting – In February 2016, the FASB issued ASU No. 2016-02, Leases, which requires the balance sheet recognition of lease assets and lease liabilities by lessees for leases previously classified as operating leases under prior GAAP. We will be required to adopt the new standard in annual and interim periods beginning January 1, 2019. Lessees and lessors will be required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach, including a number of optional practical expedients that entities may elect to apply. We have not yet evaluated the standard nor determined our implementation method upon adoption or what impact adoption will have on our financial statements. Stock Compensation – In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-based Payment Accounting, which simplifies several aspects of accounting for employee share-based payment awards, including the accounting for income taxes, withholding taxes and forfeitures, as well as classification on the statement of cash flows. We will be required to adopt the amended guidance in annual and interim reports beginning January 1, 2017, with early adoption permitted. We are in the process of determining the method of adoption and the impact this amendment will have on our consolidated financial statements . |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Reconciliation of Basic and Diluted Earnings per Share | The following table sets forth a reconciliation of basic and diluted shares (in thousands): Three months ended March 31, 2016 2015 Average common shares outstanding 124,962 124,294 Effect of dilutive securities - share-based compensation 840 806 Average shares for diluted computations 125,802 125,100 |
Antidilutive Securities Excluded From Earnings per Share | Antidilutive shares, which could potentially dilute earnings per share in the future, are set forth below (in thousands): Three months ended March 31, 2016 2015 Share options and appreciation rights 1,740 1,456 Restricted share units 2,245 1,533 Total potentially dilutive shares 3,985 2,989 |
Pension and Other Postretirem22
Pension and Other Postretirement Benefits (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Summary of Net Periodic Pension and Other Postemployment Benefit Costs | Net periodic pension cost recognized during the periods included the following components (in thousands): Three months ended March 31, 2016 2015 Service cost $ 3,781 $ 4,189 Interest cost 6,502 7,860 Expected return on plan assets (9,915 ) (10,414 ) Amortization of net loss 5,108 6,311 Amortization of prior service credit (1,245 ) (1,115 ) Total net pension cost $ 4,231 $ 6,831 Other postretirement benefit cost recognized during the periods included the following components (in thousands): Three months ended March 31, 2016 2015 Service cost $ 114 $ 320 Interest cost 509 695 Amortization of net loss (1 ) (2 ) Amortization of prior service credit (96 ) — Total other postretirement benefit cost $ 526 $ 1,013 |
Fair Value Measurements Fair 23
Fair Value Measurements Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands): Estimated fair value measurements Carrying value Quoted prices in active markets (Level 1) Significant other observable inputs (Level 2) Significant other unobservable inputs (Level 3) March 31, 2016: Assets - cash equivalents $ 583,546 $ 583,546 $ — $ — Other assets 11,690 11,690 — — December 31, 2015: Assets - cash equivalents $ 465,388 $ 465,388 $ — $ — Other assets 13,508 13,508 — — |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Schedule of Amounts Reclassified out of Each Component of Accumulated Other Comprehensive Loss | The following table sets forth the significant amounts reclassified out of each component of accumulated other comprehensive loss and their effect on net income for the period (in thousands): Three months ended March 31, 2016 2015 Amounts recognized as a component of net periodic pension and other postretirement benefit cost: Amortization of net loss $ (5,105 ) $ (6,309 ) Amortization of prior service credit 1,241 1,115 Total before income taxes (3,864 ) (5,194 ) Income tax benefit 1,349 1,808 Total reclassifications for the period, net of income taxes $ (2,515 ) $ (3,386 ) |
Other Financial Statement Dis25
Other Financial Statement Disclosures (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Other Financial Statement Disclosures [Abstract] | |
Components of Receivables - trade and other | The following table sets forth the components of Receivables - trade and other (in thousands): March 31, 2016 December 31, 2015 Trade $ 411,754 $ 395,694 Income tax 4,947 4,463 Other 10,208 10,362 Total receivables - trade and other $ 426,909 $ 410,519 |
Schedule of Accrued Liabilities | The following table sets forth the components of accrued liabilities (in thousands): March 31, 2016 December 31, 2015 Pension and other postretirement benefits $ 26,675 $ 31,389 Compensation and related employee costs 55,958 73,628 Interest 34,155 44,338 Income taxes 29,174 23,927 Other 14,423 12,753 Total accrued liabilities $ 160,385 $ 186,035 |
Schedule of Long-term Debt | Long-term debt consisted of the following (in thousands): March 31, 2016 December 31, 2015 5% Senior Notes, due September 2017 ($359.6 million and $366.6 million principal amount, respectively; 5.1% effective rate) $ 358,682 $ 365,494 7.875% Senior Notes, due August 2019 ($426.0 million and $435.5 million principal amount, respectively; 8.0% effective rate) 423,650 432,870 4.875% Senior Notes, due June 2022 ($700 million principal amount; 4.6% effective rate) 705,994 706,236 4.75% Senior Notes, due January 2024 ($400 million principal amount; 4.8% effective rate) 397,160 397,069 5.4% Senior Notes, due December 2042 ($400 million principal amount; 5.5% effective rate) 394,769 394,720 5.85% Senior Notes, due January 2044 ($400 million principal amount; 5.9% effective rate) 396,066 396,030 Total carrying value 2,676,321 2,692,419 Less: amounts classified as current 21,278 — Long-term debt, less current portion $ 2,655,043 $ 2,692,419 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information | Segment information for the three months ended March 31 is set forth below (in th |
Guarantees of Registered Secu27
Guarantees of Registered Securities (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Balance Sheet | Condensed Consolidating Balance Sheets March 31, 2016 (in thousands) (unaudited) Rowan plc (Parent) RCI (Issuer) Non-guarantor subsidiaries Consolidating adjustments Consolidated CURRENT ASSETS: Cash and cash equivalents $ 13,494 $ 88,146 $ 493,560 $ — $ 595,200 Receivables - trade and other 110 1,593 425,206 — 426,909 Other current assets 172 12,778 6,785 — 19,735 Total current assets 13,776 102,517 925,551 — 1,041,844 Property, plant and equipment - gross — 605,741 8,483,677 — 9,089,418 Less accumulated depreciation and amortization — 250,793 1,506,501 — 1,757,294 Property, plant and equipment - net — 354,948 6,977,176 — 7,332,124 Investments in subsidiaries 4,895,578 6,117,073 — (11,012,651 ) — Due from affiliates 40 970,885 13,601 (984,526 ) — Other assets — 5,526 12,633 — 18,159 $ 4,909,394 $ 7,550,949 $ 7,928,961 $ (11,997,177 ) $ 8,392,127 CURRENT LIABILITIES: Current portion of long-term debt $ — $ 21,278 $ — $ — $ 21,278 Accounts payable - trade 207 17,404 69,460 — 87,071 Deferred revenues — — 30,523 — 30,523 Accrued liabilities 467 94,385 65,533 — 160,385 Total current liabilities 674 133,067 165,516 — 299,257 Long-term debt, less current portion — 2,655,043 — — 2,655,043 Due to affiliates 4,036 12,789 967,701 (984,526 ) — Other liabilities 4,651 304,297 43,450 — 352,398 Deferred income taxes - net — 529,308 143,677 (487,589 ) 185,396 Shareholders' equity 4,900,033 3,916,445 6,608,617 (10,525,062 ) 4,900,033 $ 4,909,394 $ 7,550,949 $ 7,928,961 $ (11,997,177 ) $ 8,392,127 Rowan Companies plc and Subsidiaries Condensed Consolidating Balance Sheets December 31, 2015 (in thousands) Rowan plc (Parent) RCI (Issuer) Non-guarantor subsidiaries Consolidating adjustments Consolidated CURRENT ASSETS: Cash and cash equivalents $ 17,297 $ 9,506 $ 457,425 $ — $ 484,228 Receivables - trade and other 110 1,369 409,040 — 410,519 Other current assets 394 19,230 6,904 — 26,528 Total current assets 17,801 30,105 873,369 — 921,275 Property, plant and equipment - gross — 592,809 8,475,284 — 9,068,093 Less accumulated depreciation and amortization — 242,665 1,419,596 — 1,662,261 Property, plant and equipment - net — 350,144 7,055,688 — 7,405,832 Investments in subsidiaries 4,763,306 6,028,242 — (10,791,548 ) — Due from affiliates 629 1,218,233 55,751 (1,274,613 ) — Other assets — 4,999 15,161 — 20,160 $ 4,781,736 $ 7,631,723 $ 7,999,969 $ (12,066,161 ) $ 8,347,267 CURRENT LIABILITIES: Accounts payable - trade $ 960 $ 19,111 $ 89,503 $ — $ 109,574 Deferred revenues — 6 33,056 — 33,062 Accrued liabilities 778 119,388 65,869 — 186,035 Total current liabilities 1,738 138,505 188,428 — 328,671 Long-term debt — 2,692,419 — — 2,692,419 Due to affiliates 2,880 55,750 1,215,983 (1,274,613 ) — Other liabilities 4,659 304,709 48,555 — 357,923 Deferred income taxes - net — 522,927 150,822 (477,954 ) 195,795 Shareholders' equity 4,772,459 3,917,413 6,396,181 (10,313,594 ) 4,772,459 $ 4,781,736 $ 7,631,723 $ 7,999,969 $ (12,066,161 ) $ 8,347,267 |
Condensed Income Statement | Condensed Consolidating Income Statements Three months ended March 31, 2016 (in thousands) (unaudited) Rowan plc (Parent) RCI (Issuer) Non-guarantor subsidiaries Consolidating adjustments Consolidated REVENUES $ — $ 20,788 $ 499,411 $ (20,019 ) $ 500,180 COSTS AND EXPENSES: Direct operating costs (excluding items below) — 976 222,358 (18,502 ) 204,832 Depreciation and amortization — 4,195 94,339 318 98,852 Selling, general and administrative 7,027 — 21,738 (1,835 ) 26,930 Loss on disposals of property and equipment — 10 2,167 — 2,177 Total costs and expenses 7,027 5,181 340,602 (20,019 ) 332,791 INCOME (LOSS) FROM OPERATIONS (7,027 ) 15,607 158,809 — 167,389 OTHER INCOME (EXPENSE): Interest expense, net of interest capitalized — (38,924 ) (1,942 ) 1,942 (38,924 ) Interest income 15 1,975 396 (1,942 ) 444 Gain on debt extinguishment — 577 — — 577 Other - net 5,357 (5,333 ) (2,601 ) — (2,577 ) Total other income (expense) - net 5,372 (41,705 ) (4,147 ) — (40,480 ) INCOME (LOSS) BEFORE INCOME TAXES (1,655 ) (26,098 ) 154,662 — 126,909 Provision (benefit) for income taxes — 11,477 2,472 (9,839 ) 4,110 Equity in earnings of subsidiaries, net of tax 124,454 26,594 — (151,048 ) — NET INCOME (LOSS) $ 122,799 $ (10,981 ) $ 152,190 $ (141,209 ) $ 122,799 Rowan Companies plc and Subsidiaries Condensed Consolidating Income Statements Three months ended March 31, 2015 (in thousands) (unaudited) Rowan plc (Parent) RCI (Issuer) Non-guarantor subsidiaries Consolidating adjustments Consolidated REVENUES $ — $ 15,046 $ 547,351 $ (15,358 ) $ 547,039 COSTS AND EXPENSES: Direct operating costs (excluding items below) — 1,697 268,291 (14,254 ) 255,734 Depreciation and amortization — 4,580 84,861 249 89,690 Selling, general and administrative 4,212 642 24,085 (1,353 ) 27,586 Gain on disposals of property and equipment — (342 ) (171 ) — (513 ) Total costs and expenses 4,212 6,577 377,066 (15,358 ) 372,497 INCOME (LOSS) FROM OPERATIONS (4,212 ) 8,469 170,285 — 174,542 OTHER INCOME (EXPENSE): Interest expense, net of interest capitalized — (32,746 ) (2,449 ) 2,449 (32,746 ) Interest income 134 2,467 3 (2,449 ) 155 Other - net 5,604 (5,523 ) (1,122 ) — (1,041 ) Total other income (expense) - net 5,738 (35,802 ) (3,568 ) — (33,632 ) INCOME (LOSS) BEFORE INCOME TAXES 1,526 (27,333 ) 166,717 — 140,910 Provision (benefit) for income taxes — 390 28,749 (11,898 ) 17,241 Equity in earnings of subsidiaries, net of tax 122,143 22,078 — (144,221 ) — NET INCOME (LOSS) $ 123,669 $ (5,645 ) $ 137,968 $ (132,323 ) $ 123,669 |
Condensed Statement of Comprehensive Income | Statements of Comprehensive Income Three months ended March 31, 2016 (in thousands) (unaudited) Rowan plc (Parent) RCI (Issuer) Non-guarantor subsidiaries Consolidating adjustments Consolidated NET INCOME (LOSS) $ 122,799 $ (10,981 ) $ 152,190 $ (141,209 ) $ 122,799 OTHER COMPREHENSIVE INCOME: Net reclassification adjustments for amount recognized in net income as a component of net periodic benefit cost, net of income taxes 2,515 2,515 — (2,515 ) 2,515 COMPREHENSIVE INCOME (LOSS) $ 125,314 $ (8,466 ) $ 152,190 $ (143,724 ) $ 125,314 Rowan Companies plc and Subsidiaries Statements of Comprehensive Income Three months ended March 31, 2015 (in thousands) (unaudited) Rowan plc (Parent) RCI (Issuer) Non-guarantor subsidiaries Consolidating adjustments Consolidated NET INCOME (LOSS) $ 123,669 $ (5,645 ) $ 137,968 $ (132,323 ) $ 123,669 OTHER COMPREHENSIVE INCOME: Net reclassification adjustments for amount recognized in net income as a component of net periodic benefit cost, net of income taxes 3,386 3,386 — (3,386 ) 3,386 COMPREHENSIVE INCOME (LOSS) $ 127,055 $ (2,259 ) $ 137,968 $ (135,709 ) $ 127,055 |
Condensed Cash Flow Statement | Consolidating Statements of Cash Flows Three months ended March 31, 2016 (in thousands) (unaudited) Rowan plc (Parent) RCI (Issuer) Non-guarantor subsidiaries Consolidating adjustments Consolidated NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES $ (2,504 ) $ (46,553 ) $ 208,584 $ 524 $ 160,051 INVESTING ACTIVITIES: Property, plant and equipment additions — (9,134 ) (23,774 ) — (32,908 ) Proceeds from disposals of property, plant and equipment — 244 55 — 299 Collections on subsidiary notes receivables — 248,795 — (248,795 ) — Investments in consolidated subsidiaries (200 ) (59,949 ) — 60,149 — Net cash provided by (used in) investing activities (200 ) 179,956 (23,719 ) (188,646 ) (32,609 ) FINANCING ACTIVITIES: Advances (to) from affiliates (1,099 ) (38,293 ) 39,916 (524 ) — Contributions from parent — — 60,149 (60,149 ) — Repayments of borrowings — (16,470 ) (248,795 ) 248,795 (16,470 ) Net cash provided by (used in) financing activities (1,099 ) (54,763 ) (148,730 ) 188,122 (16,470 ) (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (3,803 ) 78,640 36,135 — 110,972 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 17,297 9,506 457,425 — 484,228 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 13,494 $ 88,146 $ 493,560 $ — $ 595,200 Rowan Companies plc and Subsidiaries Consolidating Statements of Cash Flows Three months ended March 31, 2015 (in thousands) (unaudited) Rowan plc (Parent) RCI (Issuer) Non-guarantor subsidiaries Consolidating adjustments Consolidated NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES $ (3,615 ) $ (19,741 ) $ 266,064 $ 2,058 $ 244,766 INVESTING ACTIVITIES: Property, plant and equipment additions — (1,758 ) (512,507 ) — (514,265 ) Proceeds from disposals of property, plant and equipment — 1,198 482 — 1,680 Net cash used in investing activities — (560 ) (512,025 ) — (512,585 ) FINANCING ACTIVITIES: Advances (to) from affiliates (28,837 ) (23,352 ) 54,247 (2,058 ) — Dividends paid (12,562 ) — — — (12,562 ) Excess tax benefit (deficit) from share-based compensation — (1,981 ) — — (1,981 ) Net cash provided by (used in) financing activities (41,399 ) (25,333 ) 54,247 (2,058 ) (14,543 ) DECREASE IN CASH AND CASH EQUIVALENTS (45,014 ) (45,634 ) (191,714 ) — (282,362 ) CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 45,909 48,580 244,665 — 339,154 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 895 $ 2,946 $ 52,951 $ — $ 56,792 |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Earnings Per Share [Abstract] | ||
Average common shares outstanding | 124,962 | 124,294 |
Effect of dilutive securities - share-based compensation (in shares) | 840 | 806 |
Average shares for diluted computations | 125,802 | 125,100 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total potentially dilutive shares | 3,985 | 2,989 |
Share Options and Appreciation Rights [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total potentially dilutive shares | 1,740 | 1,456 |
Restricted share units [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total potentially dilutive shares | 2,245 | 1,533 |
Nature of Operations and Basi29
Nature of Operations and Basis of Presentation (Details) | 3 Months Ended |
Mar. 31, 2016drilling_unit | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of mobile offshore drilling units | 31 |
Number of fleet of self-elevating mobile offshore jack-up drilling units | 27 |
Number of ultra-deepwater drillships | 4 |
Pension and Other Postretirem30
Pension and Other Postretirement Benefits (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Contribution to pension and other postemployment benefit plans | $ 6,200 | |
Future contributions to pension and other postemployment benefit plans | 23,300 | |
Defined Benefit Pension [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 3,781 | $ 4,189 |
Interest cost | 6,502 | 7,860 |
Expected return on plan assets | (9,915) | (10,414) |
Amortization of net loss | 5,108 | 6,311 |
Amortization of prior service credit | (1,245) | (1,115) |
Total net pension cost and other postemployment benefit cost | 4,231 | 6,831 |
Other Postemployment Benefit [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 114 | 320 |
Interest cost | 509 | 695 |
Amortization of net loss | (1) | (2) |
Amortization of prior service credit | (96) | 0 |
Total net pension cost and other postemployment benefit cost | $ 526 | $ 1,013 |
Commitments and Contingent Li31
Commitments and Contingent Liabilities (Details) $ in Millions | Mar. 31, 2016USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Outstanding letters of credit | $ 4.3 |
Share-Based Compensation (Detai
Share-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Millions | Feb. 25, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost related to nonvested share-based compensation arrangements | $ 51.6 | ||
Compensation expense over a remaining weighted-average period | 2 years | ||
Restricted share units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of restricted stock granted | $ 19.3 | ||
Awards vesting period | 3 years | ||
Aggregate grant date fair value, net of estimated forfeitures | $ 18.2 | ||
Requisite service period | 2 years 7 months 6 days | ||
Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awards vesting period | 3 years | ||
Target value of P-Units (in dollars per unit) | $ 100 | ||
Grant date fair value of P-Units | $ 8.6 | ||
Performance measurement period | 3 years | ||
Estimated liabilities for share-based compensation awards classified as short-term | $ 7.9 | $ 7.6 | |
Estimated liabilities for share-based compensation awards classified as long-term | $ 5.5 | $ 11.4 | |
Performance Shares [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected payout on P-Units (in dollars per unit) | 0 | ||
Performance Shares [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected payout on P-Units (in dollars per unit) | $ 200 | ||
One-Year Period ending December 31, 2016 | Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage based on relative total shareholder return ranking on annual basis | 25.00% | ||
Period for value determination | 1 year | ||
One-Year Period Ending December 31, 2017 | Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage based on relative total shareholder return ranking on annual basis | 25.00% | ||
Period for value determination | 1 year | ||
One-Year Period Ending December 31, 2018 | Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage based on relative total shareholder return ranking on annual basis | 25.00% | ||
Period for value determination | 1 year | ||
Three-Year Period Ending December 31, 2018 | Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Period for value determination | 3 years | ||
Vesting percentage of performance units periodically | 25.00% |
Fair Value Measurements Fair 33
Fair Value Measurements Fair Value Measurements - Assets and Liabilities Measured on a Recurring Basis (Details) - Recurring basis [Member] - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Carrying value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets - cash equivalents | $ 583,546 | $ 465,388 |
Other assets | 11,690 | 13,508 |
Estimate of Fair Value Measurement [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets - cash equivalents | 583,546 | 465,388 |
Other assets | 11,690 | 13,508 |
Estimate of Fair Value Measurement [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets - cash equivalents | 0 | 0 |
Other assets | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets - cash equivalents | 0 | 0 |
Other assets | $ 0 | $ 0 |
Fair Value Measurements - Other
Fair Value Measurements - Other Fair Value Measurements (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Fair Value Disclosures [Abstract] | ||
Carrying value of publicly traded debt securities | $ 2,676,321 | $ 2,692,419 |
Fair value of publicly traded debt securities | $ 1,943,000 | $ 2,072,000 |
Shareholders' Equity - Amounts
Shareholders' Equity - Amounts Reclassified from Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent [Member] | ||
Amounts recognized as a component of net periodic pension and other postretirement benefit cost: | ||
Total before income taxes | $ (5,105) | $ (6,309) |
Accumulated Defined Benefit Plans Adjustment, Net Prior Service Attributable to Parent [Member] | ||
Amounts recognized as a component of net periodic pension and other postretirement benefit cost: | ||
Total before income taxes | 1,241 | 1,115 |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||
Amounts recognized as a component of net periodic pension and other postretirement benefit cost: | ||
Total before income taxes | (3,864) | (5,194) |
Income tax benefit | 1,349 | 1,808 |
Total reclassifications for the period, net of income taxes | $ (2,515) | $ (3,386) |
Other Financial Statement Dis36
Other Financial Statement Disclosures (Components of Receivables) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Other Financial Statement Disclosures [Abstract] | ||
Trade | $ 411,754 | $ 395,694 |
Income tax | 4,947 | 4,463 |
Other | 10,208 | 10,362 |
Total receivables - trade and other | $ 426,909 | $ 410,519 |
Other Financial Statement Dis37
Other Financial Statement Disclosures (Accrued Liabilities) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Other Financial Statement Disclosures [Abstract] | ||
Pension and other postretirement benefits | $ 26,675 | $ 31,389 |
Compensation and related employee costs | 55,958 | 73,628 |
Interest | 34,155 | 44,338 |
Income taxes | 29,174 | 23,927 |
Other | 14,423 | 12,753 |
Total accrued liabilities | $ 160,385 | $ 186,035 |
Other Financial Statement Dis38
Other Financial Statement Disclosures (Long Term Debt) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Total carrying value | $ 2,676,321 | $ 2,692,419 |
Less: amounts classified as current | 21,278 | 0 |
Long-term debt, less current portion | 2,655,043 | 2,692,419 |
5% Senior Notes, due September 2017 [Member] | Unsecured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Total carrying value | $ 358,682 | $ 365,494 |
Stated rate | 5.00% | 5.00% |
Principal amount | $ 359,600 | $ 366,600 |
Effective rate | 5.10% | 5.10% |
7.875% Senior Notes, due August 2019 [Member] | Unsecured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Total carrying value | $ 423,650 | $ 432,870 |
Stated rate | 7.875% | 7.875% |
Principal amount | $ 426,000 | $ 435,500 |
Effective rate | 8.00% | 8.00% |
4.875% Senior Notes, due June 2022 [Member] | Unsecured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Total carrying value | $ 705,994 | $ 706,236 |
Stated rate | 4.875% | 4.875% |
Principal amount | $ 700,000 | $ 700,000 |
Effective rate | 4.60% | 4.60% |
4.75% Senior Notes, due January 2024 [Member] | Unsecured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Total carrying value | $ 397,160 | $ 397,069 |
Stated rate | 4.75% | 4.75% |
Principal amount | $ 400,000 | $ 400,000 |
Effective rate | 4.80% | 4.80% |
5.4% Senior Notes due, December 2042 [Member] | Unsecured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Total carrying value | $ 394,769 | $ 394,720 |
Stated rate | 5.40% | 5.40% |
Principal amount | $ 400,000 | $ 400,000 |
Effective rate | 5.50% | 5.50% |
5.85% Senior Notes, due January 2044 [Member] | Unsecured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Total carrying value | $ 396,066 | $ 396,030 |
Stated rate | 5.85% | 5.85% |
Principal amount | $ 400,000 | $ 400,000 |
Effective rate | 5.90% | 5.90% |
Other Financial Statement Dis39
Other Financial Statement Disclosures (Long Term Debt, Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | ||||
Apr. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | ||||||
Carrying value of debt repaid | $ 21,278 | $ 21,278 | $ 0 | |||
Gain on extinguishment of debt | 577 | $ 0 | ||||
Senior Note Payable Due 2017 and 2019 [Member] | Unsecured Debt [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Early repayment of debt | 15,900 | |||||
Aggregate amount of debt paid | 21,400 | 16,500 | ||||
Carrying value of debt repaid | $ 21,300 | 21,300 | ||||
Gain on extinguishment of debt | $ 600 | |||||
5% Senior Notes, due September 2017 [Member] | Unsecured Debt [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Stated rate | 5.00% | 5.00% | 5.00% | |||
7.875% Senior Notes, due August 2019 [Member] | Unsecured Debt [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Stated rate | 7.875% | 7.875% | 7.875% | |||
Subsequent Event [Member] | 7.875% Senior Notes, due August 2019 [Member] | Unsecured Debt [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate amount of debt paid | $ 10,000 | |||||
Stated rate | 7.875% | |||||
Forecast [Member] | Senior Note Payable Due 2017 and 2019 [Member] | Unsecured Debt [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Gain on extinguishment of debt | $ 1,200 | |||||
Forecast [Member] | 7.875% Senior Notes, due August 2019 [Member] | Unsecured Debt [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Gain on extinguishment of debt | $ 600 |
Other Financial Statement Dis40
Other Financial Statement Disclosures (Narrative) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Supplemental Cash Flow Information | ||
Accrued capital expenditures | $ 27,000,000 | $ 57,100,000 |
Interest capitalized in connection with rig construction projects | $ 0 | $ 7,500,000 |
Income Taxes | ||
Effective tax rate | 3.20% | 12.20% |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016USD ($)segment | Mar. 31, 2015USD ($) | |
Segment Reporting [Abstract] | ||
Number of operating segments | segment | 2 | |
Segment Reporting Information [Line Items] | ||
Revenues from external customers | $ 500,180 | $ 547,039 |
Direct operating costs (excluding items below) | 204,832 | 255,734 |
Depreciation and amortization | 98,852 | 89,690 |
Selling, general and administrative | 26,930 | 27,586 |
Other operating items | 2,177 | (513) |
INCOME FROM OPERATIONS | 167,389 | 174,542 |
Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues from external customers | 500,180 | 547,039 |
Direct operating costs (excluding items below) | 204,832 | 255,734 |
Depreciation and amortization | 95,702 | 86,696 |
Selling, general and administrative | 0 | 0 |
Other operating items | 2,193 | 0 |
INCOME FROM OPERATIONS | 197,453 | 204,609 |
Operating Segments [Member] | Deepwater [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues from external customers | 222,534 | 146,871 |
Direct operating costs (excluding items below) | 66,982 | 59,027 |
Depreciation and amortization | 27,348 | 17,663 |
Selling, general and administrative | 0 | 0 |
Other operating items | 297 | 0 |
INCOME FROM OPERATIONS | 127,907 | 70,181 |
Operating Segments [Member] | Jack-ups [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues from external customers | 277,646 | 400,168 |
Direct operating costs (excluding items below) | 137,850 | 196,707 |
Depreciation and amortization | 68,354 | 69,033 |
Selling, general and administrative | 0 | 0 |
Other operating items | 1,896 | 0 |
INCOME FROM OPERATIONS | 69,546 | 134,428 |
Unallocated Costs and Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues from external customers | 0 | 0 |
Direct operating costs (excluding items below) | 0 | 0 |
Depreciation and amortization | 3,150 | 2,994 |
Selling, general and administrative | 26,930 | 27,586 |
Other operating items | (16) | (513) |
INCOME FROM OPERATIONS | $ (30,064) | $ (30,067) |
Guarantees of Registered Secu42
Guarantees of Registered Securities (Narrative) (Details) | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
5% Senior Notes, due September 2017 [Member] | Unsecured Debt [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Stated interest rate percentage | 5.00% | 5.00% |
7.875% Senior Notes, due August 2019 [Member] | Unsecured Debt [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Stated interest rate percentage | 7.875% | 7.875% |
4.875% Senior Notes, due June 2022 [Member] | Unsecured Debt [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Stated interest rate percentage | 4.875% | 4.875% |
4.75% Senior Notes, due January 2024 [Member] | Unsecured Debt [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Stated interest rate percentage | 4.75% | 4.75% |
5.85% Senior Notes, due January 2044 [Member] | Unsecured Debt [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Stated interest rate percentage | 5.85% | 5.85% |
RCI (Issuer) [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Subsidiary ownership percentage by parent | 100.00% | |
RCI (Issuer) [Member] | 5% Senior Notes, due September 2017 [Member] | Unsecured Debt [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Stated interest rate percentage | 5.00% | |
RCI (Issuer) [Member] | 7.875% Senior Notes, due August 2019 [Member] | Unsecured Debt [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Stated interest rate percentage | 7.875% | |
RCI (Issuer) [Member] | 4.875% Senior Notes, due June 2022 [Member] | Unsecured Debt [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Stated interest rate percentage | 4.875% | |
RCI (Issuer) [Member] | 4.75% Senior Notes, due January 2024 [Member] | Unsecured Debt [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Stated interest rate percentage | 4.75% | |
RCI (Issuer) [Member] | 5.4% Senior Notes due 2042 [Member] | Unsecured Debt [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Stated interest rate percentage | 5.40% | |
RCI (Issuer) [Member] | 5.85% Senior Notes, due January 2044 [Member] | Unsecured Debt [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Stated interest rate percentage | 5.85% |
Guarantees of Registered Secu43
Guarantees of Registered Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Dec. 31, 2015 | |
CURRENT ASSETS: | ||||
Cash and cash equivalents | $ 484,228 | $ 339,154 | $ 595,200 | $ 484,228 |
Receivables - trade and other | 426,909 | 410,519 | ||
Other current assets | 19,735 | 26,528 | ||
Total current assets | 1,041,844 | 921,275 | ||
Property, plant and equipment - gross | 9,089,418 | 9,068,093 | ||
Less accumulated depreciation and amortization | 1,757,294 | 1,662,261 | ||
Property, plant and equipment - net | 7,332,124 | 7,405,832 | ||
Investments in subsidiaries | 0 | 0 | ||
Due from affiliates | 0 | 0 | ||
Other assets | 18,159 | 20,160 | ||
TOTAL ASSETS | 8,392,127 | 8,347,267 | ||
CURRENT LIABILITIES: | ||||
Current portion of long-term debt | 21,278 | 0 | ||
Accounts payable - trade | 87,071 | 109,574 | ||
Deferred revenues | 30,523 | 33,062 | ||
Accrued liabilities | 160,385 | 186,035 | ||
Total current liabilities | 299,257 | 328,671 | ||
Long-term debt, less current portion | 2,655,043 | 2,692,419 | ||
Due to affiliates | 0 | 0 | ||
Other liabilities | 352,398 | 357,923 | ||
Deferred income taxes - net | 185,396 | 195,795 | ||
Shareholders' equity | 4,900,033 | 4,772,459 | ||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 8,392,127 | 8,347,267 | ||
Consolidating Income Statements | ||||
REVENUES | 500,180 | 547,039 | ||
COSTS AND EXPENSES: | ||||
Direct operating costs (excluding items below) | 204,832 | 255,734 | ||
Depreciation and amortization | 98,852 | 89,690 | ||
Selling, general and administrative | 26,930 | 27,586 | ||
Loss (gain) on disposals of property and equipment | 2,177 | (513) | ||
Total costs and expenses | 332,791 | 372,497 | ||
INCOME FROM OPERATIONS | 167,389 | 174,542 | ||
OTHER INCOME (EXPENSE): | ||||
Interest expense, net of interest capitalized | (38,924) | (32,746) | ||
Interest income | 444 | 155 | ||
Gain on extinguishment of debt | 577 | 0 | ||
Other - net | (2,577) | (1,041) | ||
Total other income (expense) - net | (40,480) | (33,632) | ||
INCOME BEFORE INCOME TAXES | 126,909 | 140,910 | ||
Provision (benefit) for income taxes | 4,110 | 17,241 | ||
Equity in earnings of subsidiaries, net of tax | 0 | 0 | ||
NET INCOME | 122,799 | 123,669 | ||
Statement of Comprehensive Income [Abstract] | ||||
NET INCOME | 122,799 | 123,669 | ||
OTHER COMPREHENSIVE INCOME: | ||||
Net reclassification adjustments for amount recognized in net income as a component of net periodic benefit cost, net of income taxes | 2,515 | 3,386 | ||
COMPREHENSIVE INCOME | 125,314 | 127,055 | ||
Consolidated Statement of Cash Flows [Abstract] | ||||
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | 160,051 | 244,766 | ||
INVESTING ACTIVITIES: | ||||
Property, plant and equipment additions | (32,908) | (514,265) | ||
Proceeds from disposals of property, plant and equipment | 299 | 1,680 | ||
Collections on subsidiary notes receivables | 0 | |||
Investments in consolidated subsidiaries | 0 | |||
Net cash used in investing activities | (32,609) | (512,585) | ||
FINANCING ACTIVITIES: | ||||
Advances (to) from affiliates | 0 | 0 | ||
Contributions from parent | 0 | |||
Repayments of borrowings | (16,470) | 0 | ||
Dividends paid | 0 | (12,562) | ||
Excess tax benefit (deficit) from share-based compensation | 0 | (1,981) | ||
Net cash used in financing activities | (16,470) | (14,543) | ||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 110,972 | (282,362) | ||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 484,228 | 339,154 | ||
CASH AND CASH EQUIVALENTS, END OF PERIOD | 595,200 | 56,792 | ||
Consolidating adjustments [Member] | ||||
CURRENT ASSETS: | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Receivables - trade and other | 0 | 0 | ||
Other current assets | 0 | 0 | ||
Total current assets | 0 | 0 | ||
Property, plant and equipment - gross | 0 | 0 | ||
Less accumulated depreciation and amortization | 0 | 0 | ||
Property, plant and equipment - net | 0 | 0 | ||
Investments in subsidiaries | (11,012,651) | (10,791,548) | ||
Due from affiliates | (984,526) | (1,274,613) | ||
Other assets | 0 | 0 | ||
TOTAL ASSETS | (11,997,177) | (12,066,161) | ||
CURRENT LIABILITIES: | ||||
Current portion of long-term debt | 0 | |||
Accounts payable - trade | 0 | 0 | ||
Deferred revenues | 0 | 0 | ||
Accrued liabilities | 0 | 0 | ||
Total current liabilities | 0 | 0 | ||
Long-term debt, less current portion | 0 | 0 | ||
Due to affiliates | (984,526) | (1,274,613) | ||
Other liabilities | 0 | 0 | ||
Deferred income taxes - net | (487,589) | (477,954) | ||
Shareholders' equity | (10,525,062) | (10,313,594) | ||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | (11,997,177) | (12,066,161) | ||
Consolidating Income Statements | ||||
REVENUES | (20,019) | (15,358) | ||
COSTS AND EXPENSES: | ||||
Direct operating costs (excluding items below) | (18,502) | (14,254) | ||
Depreciation and amortization | 318 | 249 | ||
Selling, general and administrative | (1,835) | (1,353) | ||
Loss (gain) on disposals of property and equipment | 0 | 0 | ||
Total costs and expenses | (20,019) | (15,358) | ||
INCOME FROM OPERATIONS | 0 | 0 | ||
OTHER INCOME (EXPENSE): | ||||
Interest expense, net of interest capitalized | 1,942 | 2,449 | ||
Interest income | (1,942) | (2,449) | ||
Gain on extinguishment of debt | 0 | |||
Other - net | 0 | 0 | ||
Total other income (expense) - net | 0 | 0 | ||
INCOME BEFORE INCOME TAXES | 0 | 0 | ||
Provision (benefit) for income taxes | (9,839) | (11,898) | ||
Equity in earnings of subsidiaries, net of tax | (151,048) | (144,221) | ||
NET INCOME | (141,209) | (132,323) | ||
Statement of Comprehensive Income [Abstract] | ||||
NET INCOME | (141,209) | (132,323) | ||
OTHER COMPREHENSIVE INCOME: | ||||
Net reclassification adjustments for amount recognized in net income as a component of net periodic benefit cost, net of income taxes | (2,515) | (3,386) | ||
COMPREHENSIVE INCOME | (143,724) | (135,709) | ||
Consolidated Statement of Cash Flows [Abstract] | ||||
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | 524 | 2,058 | ||
INVESTING ACTIVITIES: | ||||
Property, plant and equipment additions | 0 | 0 | ||
Proceeds from disposals of property, plant and equipment | 0 | 0 | ||
Collections on subsidiary notes receivables | (248,795) | |||
Investments in consolidated subsidiaries | 60,149 | |||
Net cash used in investing activities | (188,646) | 0 | ||
FINANCING ACTIVITIES: | ||||
Advances (to) from affiliates | (524) | (2,058) | ||
Contributions from parent | (60,149) | |||
Repayments of borrowings | 248,795 | |||
Dividends paid | 0 | |||
Excess tax benefit (deficit) from share-based compensation | 0 | |||
Net cash used in financing activities | 188,122 | (2,058) | ||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 0 | 0 | ||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 0 | 0 | ||
CASH AND CASH EQUIVALENTS, END OF PERIOD | 0 | 0 | ||
Rowan Companies plc (Parent) [Member] | ||||
CURRENT ASSETS: | ||||
Cash and cash equivalents | 17,297 | 45,909 | 13,494 | 17,297 |
Receivables - trade and other | 110 | 110 | ||
Other current assets | 172 | 394 | ||
Total current assets | 13,776 | 17,801 | ||
Property, plant and equipment - gross | 0 | 0 | ||
Less accumulated depreciation and amortization | 0 | 0 | ||
Property, plant and equipment - net | 0 | 0 | ||
Investments in subsidiaries | 4,895,578 | 4,763,306 | ||
Due from affiliates | 40 | 629 | ||
Other assets | 0 | 0 | ||
TOTAL ASSETS | 4,909,394 | 4,781,736 | ||
CURRENT LIABILITIES: | ||||
Current portion of long-term debt | 0 | |||
Accounts payable - trade | 207 | 960 | ||
Deferred revenues | 0 | 0 | ||
Accrued liabilities | 467 | 778 | ||
Total current liabilities | 674 | 1,738 | ||
Long-term debt, less current portion | 0 | 0 | ||
Due to affiliates | 4,036 | 2,880 | ||
Other liabilities | 4,651 | 4,659 | ||
Deferred income taxes - net | 0 | 0 | ||
Shareholders' equity | 4,900,033 | 4,772,459 | ||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 4,909,394 | 4,781,736 | ||
Consolidating Income Statements | ||||
REVENUES | 0 | 0 | ||
COSTS AND EXPENSES: | ||||
Direct operating costs (excluding items below) | 0 | 0 | ||
Depreciation and amortization | 0 | 0 | ||
Selling, general and administrative | 7,027 | 4,212 | ||
Loss (gain) on disposals of property and equipment | 0 | 0 | ||
Total costs and expenses | 7,027 | 4,212 | ||
INCOME FROM OPERATIONS | (7,027) | (4,212) | ||
OTHER INCOME (EXPENSE): | ||||
Interest expense, net of interest capitalized | 0 | 0 | ||
Interest income | 15 | 134 | ||
Gain on extinguishment of debt | 0 | |||
Other - net | 5,357 | 5,604 | ||
Total other income (expense) - net | 5,372 | 5,738 | ||
INCOME BEFORE INCOME TAXES | (1,655) | 1,526 | ||
Provision (benefit) for income taxes | 0 | 0 | ||
Equity in earnings of subsidiaries, net of tax | 124,454 | 122,143 | ||
NET INCOME | 122,799 | 123,669 | ||
Statement of Comprehensive Income [Abstract] | ||||
NET INCOME | 122,799 | 123,669 | ||
OTHER COMPREHENSIVE INCOME: | ||||
Net reclassification adjustments for amount recognized in net income as a component of net periodic benefit cost, net of income taxes | 2,515 | 3,386 | ||
COMPREHENSIVE INCOME | 125,314 | 127,055 | ||
Consolidated Statement of Cash Flows [Abstract] | ||||
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | (2,504) | (3,615) | ||
INVESTING ACTIVITIES: | ||||
Property, plant and equipment additions | 0 | 0 | ||
Proceeds from disposals of property, plant and equipment | 0 | 0 | ||
Collections on subsidiary notes receivables | 0 | |||
Investments in consolidated subsidiaries | (200) | |||
Net cash used in investing activities | (200) | 0 | ||
FINANCING ACTIVITIES: | ||||
Advances (to) from affiliates | (1,099) | (28,837) | ||
Contributions from parent | 0 | |||
Repayments of borrowings | 0 | |||
Dividends paid | (12,562) | |||
Excess tax benefit (deficit) from share-based compensation | 0 | |||
Net cash used in financing activities | (1,099) | (41,399) | ||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (3,803) | (45,014) | ||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 17,297 | 45,909 | ||
CASH AND CASH EQUIVALENTS, END OF PERIOD | 13,494 | 895 | ||
RCI (Issuer) [Member] | ||||
CURRENT ASSETS: | ||||
Cash and cash equivalents | 9,506 | 48,580 | 88,146 | 9,506 |
Receivables - trade and other | 1,593 | 1,369 | ||
Other current assets | 12,778 | 19,230 | ||
Total current assets | 102,517 | 30,105 | ||
Property, plant and equipment - gross | 605,741 | 592,809 | ||
Less accumulated depreciation and amortization | 250,793 | 242,665 | ||
Property, plant and equipment - net | 354,948 | 350,144 | ||
Investments in subsidiaries | 6,117,073 | 6,028,242 | ||
Due from affiliates | 970,885 | 1,218,233 | ||
Other assets | 5,526 | 4,999 | ||
TOTAL ASSETS | 7,550,949 | 7,631,723 | ||
CURRENT LIABILITIES: | ||||
Current portion of long-term debt | 21,278 | |||
Accounts payable - trade | 17,404 | 19,111 | ||
Deferred revenues | 0 | 6 | ||
Accrued liabilities | 94,385 | 119,388 | ||
Total current liabilities | 133,067 | 138,505 | ||
Long-term debt, less current portion | 2,655,043 | 2,692,419 | ||
Due to affiliates | 12,789 | 55,750 | ||
Other liabilities | 304,297 | 304,709 | ||
Deferred income taxes - net | 529,308 | 522,927 | ||
Shareholders' equity | 3,916,445 | 3,917,413 | ||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 7,550,949 | 7,631,723 | ||
Consolidating Income Statements | ||||
REVENUES | 20,788 | 15,046 | ||
COSTS AND EXPENSES: | ||||
Direct operating costs (excluding items below) | 976 | 1,697 | ||
Depreciation and amortization | 4,195 | 4,580 | ||
Selling, general and administrative | 0 | 642 | ||
Loss (gain) on disposals of property and equipment | 10 | (342) | ||
Total costs and expenses | 5,181 | 6,577 | ||
INCOME FROM OPERATIONS | 15,607 | 8,469 | ||
OTHER INCOME (EXPENSE): | ||||
Interest expense, net of interest capitalized | (38,924) | (32,746) | ||
Interest income | 1,975 | 2,467 | ||
Gain on extinguishment of debt | 577 | |||
Other - net | (5,333) | (5,523) | ||
Total other income (expense) - net | (41,705) | (35,802) | ||
INCOME BEFORE INCOME TAXES | (26,098) | (27,333) | ||
Provision (benefit) for income taxes | 11,477 | 390 | ||
Equity in earnings of subsidiaries, net of tax | 26,594 | 22,078 | ||
NET INCOME | (10,981) | (5,645) | ||
Statement of Comprehensive Income [Abstract] | ||||
NET INCOME | (10,981) | (5,645) | ||
OTHER COMPREHENSIVE INCOME: | ||||
Net reclassification adjustments for amount recognized in net income as a component of net periodic benefit cost, net of income taxes | 2,515 | 3,386 | ||
COMPREHENSIVE INCOME | (8,466) | (2,259) | ||
Consolidated Statement of Cash Flows [Abstract] | ||||
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | (46,553) | (19,741) | ||
INVESTING ACTIVITIES: | ||||
Property, plant and equipment additions | (9,134) | (1,758) | ||
Proceeds from disposals of property, plant and equipment | 244 | 1,198 | ||
Collections on subsidiary notes receivables | 248,795 | |||
Investments in consolidated subsidiaries | (59,949) | |||
Net cash used in investing activities | 179,956 | (560) | ||
FINANCING ACTIVITIES: | ||||
Advances (to) from affiliates | (38,293) | (23,352) | ||
Contributions from parent | 0 | |||
Repayments of borrowings | (16,470) | |||
Dividends paid | 0 | |||
Excess tax benefit (deficit) from share-based compensation | (1,981) | |||
Net cash used in financing activities | (54,763) | (25,333) | ||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 78,640 | (45,634) | ||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 9,506 | 48,580 | ||
CASH AND CASH EQUIVALENTS, END OF PERIOD | 88,146 | 2,946 | ||
Other non-guarantor subsidiaries [Member] | ||||
CURRENT ASSETS: | ||||
Cash and cash equivalents | 457,425 | 244,665 | 493,560 | 457,425 |
Receivables - trade and other | 425,206 | 409,040 | ||
Other current assets | 6,785 | 6,904 | ||
Total current assets | 925,551 | 873,369 | ||
Property, plant and equipment - gross | 8,483,677 | 8,475,284 | ||
Less accumulated depreciation and amortization | 1,506,501 | 1,419,596 | ||
Property, plant and equipment - net | 6,977,176 | 7,055,688 | ||
Investments in subsidiaries | 0 | 0 | ||
Due from affiliates | 13,601 | 55,751 | ||
Other assets | 12,633 | 15,161 | ||
TOTAL ASSETS | 7,928,961 | 7,999,969 | ||
CURRENT LIABILITIES: | ||||
Current portion of long-term debt | 0 | |||
Accounts payable - trade | 69,460 | 89,503 | ||
Deferred revenues | 30,523 | 33,056 | ||
Accrued liabilities | 65,533 | 65,869 | ||
Total current liabilities | 165,516 | 188,428 | ||
Long-term debt, less current portion | 0 | 0 | ||
Due to affiliates | 967,701 | 1,215,983 | ||
Other liabilities | 43,450 | 48,555 | ||
Deferred income taxes - net | 143,677 | 150,822 | ||
Shareholders' equity | 6,608,617 | 6,396,181 | ||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 7,928,961 | $ 7,999,969 | ||
Consolidating Income Statements | ||||
REVENUES | 499,411 | 547,351 | ||
COSTS AND EXPENSES: | ||||
Direct operating costs (excluding items below) | 222,358 | 268,291 | ||
Depreciation and amortization | 94,339 | 84,861 | ||
Selling, general and administrative | 21,738 | 24,085 | ||
Loss (gain) on disposals of property and equipment | 2,167 | (171) | ||
Total costs and expenses | 340,602 | 377,066 | ||
INCOME FROM OPERATIONS | 158,809 | 170,285 | ||
OTHER INCOME (EXPENSE): | ||||
Interest expense, net of interest capitalized | (1,942) | (2,449) | ||
Interest income | 396 | 3 | ||
Gain on extinguishment of debt | 0 | |||
Other - net | (2,601) | (1,122) | ||
Total other income (expense) - net | (4,147) | (3,568) | ||
INCOME BEFORE INCOME TAXES | 154,662 | 166,717 | ||
Provision (benefit) for income taxes | 2,472 | 28,749 | ||
Equity in earnings of subsidiaries, net of tax | 0 | 0 | ||
NET INCOME | 152,190 | 137,968 | ||
Statement of Comprehensive Income [Abstract] | ||||
NET INCOME | 152,190 | 137,968 | ||
OTHER COMPREHENSIVE INCOME: | ||||
Net reclassification adjustments for amount recognized in net income as a component of net periodic benefit cost, net of income taxes | 0 | 0 | ||
COMPREHENSIVE INCOME | 152,190 | 137,968 | ||
Consolidated Statement of Cash Flows [Abstract] | ||||
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | 208,584 | 266,064 | ||
INVESTING ACTIVITIES: | ||||
Property, plant and equipment additions | (23,774) | (512,507) | ||
Proceeds from disposals of property, plant and equipment | 55 | 482 | ||
Collections on subsidiary notes receivables | 0 | |||
Investments in consolidated subsidiaries | 0 | |||
Net cash used in investing activities | (23,719) | (512,025) | ||
FINANCING ACTIVITIES: | ||||
Advances (to) from affiliates | 39,916 | 54,247 | ||
Contributions from parent | 60,149 | |||
Repayments of borrowings | (248,795) | |||
Dividends paid | 0 | |||
Excess tax benefit (deficit) from share-based compensation | 0 | |||
Net cash used in financing activities | (148,730) | 54,247 | ||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 36,135 | (191,714) | ||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 457,425 | 244,665 | ||
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ 493,560 | $ 52,951 |